BEFORE THE STATE TAX COMMISSION OF UTAH
AUDITING DIVISION OF THE :
STATE TAX COMMISSION OF UTAH, ) INFORMAL DECISION
Respondent. : Appeal No. 87-1172
STATEMENT OF CASE
This is an appeal to the Utah State Tax Commission from an assessment by the Auditing Division of the Utah State Tax Commission (Respondent) of tax, penalty and interest on the XXXXX purchase of a XXXXX. Petitioner did not request an oral hearing. Therefore, the Tax Commission decides this matter based on the materials in the file. Petitioner requests a waiver of the tax, penalty and interest on the basis that the subject vehicle was licensed in accordance with XXXXX law. Petitioner stated that XXXXX, was a Utah Corporation which was licensed to do business in XXXXX until XXXXX, at which time it filed Articles of Incorporation in XXXXX and transferred all assets to the XXXXX. Petitioner stated that XXXXX is the President of the Corporation and that he owns real property in XXXXX, Utah. XXXXX drove the subject vehicle to Utah on XXXXX to help clean the rental property and to make sales calls to customers in Utah. Respondent stated that Petitioner was a domestic corporation of the state of Utah at the time of purchase of the subject vehicle. Respondent stated that photographs were taken of the subject vehicle in XXXXX, Utah on XXXXX, at the residence of the President of Petitioner's corporation and asserted that the subject vehicle was used almost exclusively in Utah for the first four months after purchase. Respondent assessed a use tax, a 10% negligence penalty, and interest on the purchase of the subject vehicle. The Tax Commission finds that Petitioner was a resident of Utah for motor vehicle registration purposes pursuant to R873-O1V at the time of purchase of the subject vehicle and was required to pay use tax to the state of Utah. Petitioner had the burden of proof to establish that Respondent assessed the tax, penalty and interest in error. Petitioner failed to meet this burden of proof.
DECISION AND ORDER
Based on the foregoing, it is the Decision and Order of the Utah State Tax Commission that Petitioner's request for waiver of tax, penalty and interest on the purchase of the XXXXX be denied. The assessment of tax, penalty and interest by the Auditing Division of the Utah State Tax Commission is hereby affirmed.
DATED this 8 day of February, 1989.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis